I Tried The $2 Billion Grocery App Instacart, But It Wasn't Better Than Going To The Store Myself

Steve Kovach, provided by

Published 10:19 am, Tuesday, December 30, 2014

Instacart, a startup that sends personal shoppers to local grocery stores and delivers what you want within a few hours, is getting close to raising a $220 million round of funding that values the company at over $2 billion, Re/code first reported.

Of all the apps I tried, Instacart was the worst. It was the only one that I didn't enjoy.

But before I dive into that, let me show you how it works.

Instacart is an app for your smartphone. You put in your zip code, and Instacart gives you a list of grocery stores you can shop from. In my neighborhood in New York, I can choose from Fairway, Costco, or Whole Foods.

Then you scroll through the app and add items to your cart.

When you're ready to check out, you choose a delivery window. The big benefit of Instacart is that you can get your groceries within about two hours after ordering. Instacart hires an army of independent contractors who go shopping for you and deliver the stuff to your door in free cloth bags.

Like this happy guy from Instacart's promotional materials:

But boy are there some caveats!

Instacart can't track inventory from the stores it partners with. So, for example, if you order mixed berry yogurt, but Whole Foods is out of mixed berry yogurt, your Instacart shopper has to call you with alternatives.

"Is peach yogurt OK instead?"

"Is a three-pack of chicken breasts OK instead of a two-pack?"

"They're out of bananas."

And so on.

When I tried Instacart, my shopper couldn't find a bunch of stuff I ordered. I ended up having to substitute or cancel several items in my order. Even worse, the Instacart shopper interrupts whatever you're doing with a call to rattle off all the potential substitutes. By the time I was finished talking to my shopper, I realized I would've saved more time going to the store and figuring it all out myself.

Instacart says it's willing to work with you if the shopper can't find another item. They'll even go to another store to find what you need. But that just wastes more time.

In New York, I use a service called Fresh Direct, which is its own store and can keep track of inventory. Think of it as Amazon for groceries. You pick a two-hour delivery window and the groceries you order show up at your door. No phone calls. No mess. You just get the stuff you want.

Still, a lot of people prefer Instacart because it lets you shop at the stores you love. If you're loyal to Whole Foods and looking for a Whole Foods exclusive item, Instacart is better than the alternatives. Grocery stores probably like Instacart a lot too because it helps them stay competitive with services like Fresh Direct and Amazon Fresh.

And there's still an opportunity for Instacart to plug into its partners' inventory systems so you know you're going to get what you order.